This archive report was first published on 15 January 2020.
President Uhuru Kenyatta has revealed plans to raise Sh150 billion through an infrastructure bond to settle part of the government's pending bills and complete ongoing road projects.
According to the President, the funds raised will aid the completion of all ongoing road and infrastructure projects across the country.
Speaking from State House, Mombasa, President Kenyatta noted that 70 per cent of pending bills owed by national and county governments, and verified as payable, were paid by December 31.
The national government has paid about Sh10.2 billion out of Sh14.9 billion of pending bills that had been verified.
The government plans to raise up to Sh360 billion in the next three years by issuing bonds, with the legal framework having been put in place to enable road agencies float such debt instruments.
The bonds will finance the building of new roads and maintenance of existing networks, most of which have been damaged by the recent heavy rains.
President Kenyatta signed into law the Kenya Roads Board (Amendment) Bill, 2019, paving the way for the government to seek a Sh800 billion infrastructure bond in four years.
The law gives the Kenya Roads Board powers to seek the funds to allow the government to deliver on its pledge of constructing 10,000 kilometres of roads by 2022.
